SALESFORCE INC (CRM) Stock Fundamental Analysis

NYSE:CRM • US79466L3024

194.79 USD
-4.68 (-2.35%)
At close: Feb 27, 2026
194.464 USD
-0.33 (-0.17%)
After Hours: 2/27/2026, 8:04:00 PM
Fundamental Rating

6

Overall CRM gets a fundamental rating of 6 out of 10. We evaluated CRM against 275 industry peers in the Software industry. CRM scores excellent on profitability, but there are some minor concerns on its financial health. CRM is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • CRM had positive earnings in the past year.
  • In the past year CRM had a positive cash flow from operations.
  • In the past 5 years CRM has always been profitable.
  • Each year in the past 5 years CRM had a positive operating cash flow.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B

1.2 Ratios

  • With a decent Return On Assets value of 6.64%, CRM is doing good in the industry, outperforming 75.18% of the companies in the same industry.
  • CRM has a Return On Equity of 12.61%. This is in the better half of the industry: CRM outperforms 75.55% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.59%, CRM belongs to the top of the industry, outperforming 83.58% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CRM is below the industry average of 10.80%.
  • The 3 year average ROIC (8.16%) for CRM is below the current ROIC(9.59%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROIC 9.59%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8 10

1.3 Margins

  • The Profit Margin of CRM (17.96%) is better than 80.66% of its industry peers.
  • In the last couple of years the Profit Margin of CRM has remained more or less at the same level.
  • CRM has a better Operating Margin (21.47%) than 87.23% of its industry peers.
  • In the last couple of years the Operating Margin of CRM has grown nicely.
  • CRM's Gross Margin of 77.68% is fine compared to the rest of the industry. CRM outperforms 73.72% of its industry peers.
  • In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector Rank
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

4

2. Health

2.1 Basic Checks

  • CRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, CRM has less shares outstanding
  • Compared to 5 years ago, CRM has more shares outstanding
  • CRM has a worse debt/assets ratio than last year.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B 100B

2.2 Solvency

  • An Altman-Z score of 2.92 indicates that CRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With a decent Altman-Z score value of 2.92, CRM is doing good in the industry, outperforming 64.60% of the companies in the same industry.
  • CRM has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
  • CRM has a Debt to FCF ratio of 1.00. This is in the better half of the industry: CRM outperforms 74.82% of its industry peers.
  • CRM has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
  • CRM has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: CRM outperforms 45.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Altman-Z 2.92
ROIC/WACC0.89
WACC10.82%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 0.76 indicates that CRM may have some problems paying its short term obligations.
  • The Current ratio of CRM (0.76) is worse than 86.50% of its industry peers.
  • A Quick Ratio of 0.76 indicates that CRM may have some problems paying its short term obligations.
  • CRM's Quick ratio of 0.76 is on the low side compared to the rest of the industry. CRM is outperformed by 86.13% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

6

3. Growth

3.1 Past

  • CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.61%, which is quite impressive.
  • Measured over the past years, CRM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.29% on average per year.
  • Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 9.58% in the last year.
  • The Revenue has been growing by 14.34% on average over the past years. This is quite good.
EPS 1Y (TTM)22.61%
EPS 3Y233.65%
EPS 5Y12.29%
EPS Q2Q%17.61%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.58% on average over the next years. This is quite good.
  • Based on estimates for the next years, CRM will show a quite strong growth in Revenue. The Revenue will grow by 9.53% on average per year.
EPS Next Y11.62%
EPS Next 2Y12.67%
EPS Next 3Y14.4%
EPS Next 5Y12.58%
Revenue Next Year11.01%
Revenue Next 2Y10.16%
Revenue Next 3Y9.78%
Revenue Next 5Y9.53%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.94, the valuation of CRM can be described as rather expensive.
  • Based on the Price/Earnings ratio, CRM is valued a bit cheaper than the industry average as 63.14% of the companies are valued more expensively.
  • CRM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.10.
  • Based on the Price/Forward Earnings ratio of 14.69, the valuation of CRM can be described as correct.
  • Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 75.55% of the companies in the same industry.
  • CRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 24.94
Fwd PE 14.69
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CRM is valued a bit cheaper than the industry average as 79.93% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a rather cheap valuation: CRM is cheaper than 84.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.67
EV/EBITDA 15.11
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRM does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
  • CRM's earnings are expected to grow with 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)2.03
EPS Next 2Y12.67%
EPS Next 3Y14.4%

3

5. Dividend

5.1 Amount

  • CRM has a yearly dividend return of 0.88%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.58, CRM pays a better dividend. On top of this CRM pays more dividend than 89.78% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, CRM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.88%

5.2 History

  • CRM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 0.5 1 1.5

5.3 Sustainability

  • CRM pays out 21.28% of its income as dividend. This is a sustainable payout ratio.
DP21.28%
EPS Next 2Y12.67%
EPS Next 3Y14.4%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

SALESFORCE INC

NYSE:CRM (2/27/2026, 8:04:00 PM)

After market: 194.464 -0.33 (-0.17%)

194.79

-4.68 (-2.35%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-26
Earnings (Next)05-26
Inst Owners84.48%
Inst Owner Change5.38%
Ins Owners2.57%
Ins Owner Change0.15%
Market Cap182.52B
Revenue(TTM)41.52B
Net Income(TTM)7.46B
Analysts79.66
Price Target311.82 (60.08%)
Short Float %1.94%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Yearly Dividend1.67
Dividend Growth(5Y)N/A
DP21.28%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.61%
Revenue beat(12)1
Avg Revenue beat(12)-0.53%
Revenue beat(16)2
Avg Revenue beat(16)-0.28%
PT rev (1m)0.09%
PT rev (3m)-1.78%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.2%
EPS NY rev (1m)0%
EPS NY rev (3m)3.4%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
Industry RankSector Rank
PE 24.94
Fwd PE 14.69
P/S 4.4
P/FCF 12.67
P/OCF 12.17
P/B 3.09
P/tB N/A
EV/EBITDA 15.11
EPS(TTM)7.81
EY4.01%
EPS(NY)13.26
Fwd EY6.81%
FCF(TTM)15.37
FCFY7.89%
OCF(TTM)16
OCFY8.22%
SpS44.32
BVpS63.12
TBVpS-5.99
PEG (NY)2.15
PEG (5Y)2.03
Graham Number105.32
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROCE 11.86%
ROIC 9.59%
ROICexc 10.98%
ROICexgc 832.21%
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
FCFM 34.68%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
ROICexc(3y)9.79%
ROICexc(5y)6.53%
ROICexgc(3y)348.77%
ROICexgc(5y)217.21%
ROCE(3y)10.09%
ROCE(5y)6.73%
ROICexgc growth 3Y197.62%
ROICexgc growth 5Y168.58%
ROICexc growth 3Y64.12%
ROICexc growth 5Y61.34%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Debt/EBITDA 0.83
Cap/Depr 16.36%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 119.51%
Profit Quality 193.13%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.92
F-Score7
WACC10.82%
ROIC/WACC0.89
Cap/Depr(3y)17.96%
Cap/Depr(5y)19.34%
Cap/Sales(3y)1.76%
Cap/Sales(5y)2.11%
Profit Quality(3y)207.81%
Profit Quality(5y)804.88%
High Growth Momentum
Growth
EPS 1Y (TTM)22.61%
EPS 3Y233.65%
EPS 5Y12.29%
EPS Q2Q%17.61%
EPS Next Y11.62%
EPS Next 2Y12.67%
EPS Next 3Y14.4%
EPS Next 5Y12.58%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%
Revenue Next Year11.01%
Revenue Next 2Y10.16%
Revenue Next 3Y9.78%
Revenue Next 5Y9.53%
EBIT growth 1Y16.32%
EBIT growth 3Y68.68%
EBIT growth 5Y81.32%
EBIT Next Year37.9%
EBIT Next 3Y15.62%
EBIT Next 5Y4.52%
FCF growth 1Y15.83%
FCF growth 3Y31.64%
FCF growth 5Y28.62%
OCF growth 1Y14.54%
OCF growth 3Y28.24%
OCF growth 5Y25.58%

SALESFORCE INC / CRM FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 5 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.


Can you provide the profitability details for SALESFORCE INC?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the valuation of SALESFORCE INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SALESFORCE INC (CRM) is 24.94 and the Price/Book (PB) ratio is 3.09.


How financially healthy is SALESFORCE INC?

The financial health rating of SALESFORCE INC (CRM) is 4 / 10.